JPMorgan posts a first-quarter profit of 5.91 billion and income climbed by 12Cristina Cantor (Author) Published Date : Apr 14, 2015 18:37 ET
The biggest bank in the US, JPMorgan Chase has posted a first-quarter profit of $5.91 billion, saying its profit rose by 12% due to increasing revenue that came from fixed-income trading.
With a net income of $5.91 billion or $1.45 per share, this quarter s profit is higher than that of last year which recorded at $5.27 billion or $1.28 per share. Meanwhile, Bloomberg had earlier surveyed 31 analysts who said they looked forward to a $1.41 earning per share.
According to chief executive officer of JPMorgan s investment bank, Daniel Pinto in January, the revenue from trading was stronger at the beginning of the year because higher volatility was boosted by volume.
We expected an improvement in fixed-income trading revenues, said Pri de Silva, senior banking analyst at CreditSights Inc. in New York, before the results were released. That should bode well for competitors including Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc., de Silva said.
Due to higher capital requirements, JPMorgan as the largest investment bank in the world reduced its target for incomes from 15% to 13%; and according to Pinto, also estimate whether it should shrink in aspects that have to do with prime brokerage and interest-rates lending due to the new capital requirements.
The large size of the bank and its investment portfolios had necessitated concerns that the business should split into four pieces to allow for better management and revenue in response to new capital rules, but this move remains to be seen at the moment.
Though we still face legal uncertainty, particularly around foreign-exchange trading, we are determined to reduce it, said CEO Jamie Dimon in his annual letter to investors last week. Meaning that legal costs that could occur in the future makes valuation pretty difficult for the bank, which paid out over $36 billion in legal costs since the financial crisis began sometime ago but Dimon said this trend may normalize by 2016.
Wells Fargo & Co., the biggest U.S. mortgage lender, is also scheduled to report results today. Bank of America Corp., the second-biggest U.S. bank by assets, and No. 3 ranked Citigroup will report later this week.
JPMorgan posts a first-quarter profit of 5.91 billion and income climbed by 12